It is absolutely baffling to me how frequently I hear people talk about this around me. There is no way this is happening anytime in the near future.
Out-of-regulatory-reach is what they'll actually be selling. It can be on earth, it just has to be sufficiently hidden such that you can claim that it's in space.
That conversation goes like this:
US: Stop doing that thing with your data center
X: It's in space, you can't tell us what to do
US: Yes we can
X: <Say OK> or <Go to jail>